FG Urged to Cut Aviation Charges as High Costs Keep Airfares Out of Reach

The Federal Government has been advised to reduce aviation charges and taxes to lower airfares and make air travel more affordable in Nigeria.

The Federal Government has been advised to reduce aviation charges and taxes to lower airfares and make air travel more affordable in Nigeria.

The Chief Commercial Officer of United Nigeria Airlines, Adedayo Olawuyi, gave the advice on Wednesday while speaking at the AeroWest conference in Lagos, themed “The Real Cost of Running Aviation Business: Fixing Connectivity, Affordability, FX, Fuel and Border Friction,” as contained in a statement issued by the airline and seen by Nairametrics.

For many Nigerians, air travel has long remained beyond the reach of the average passenger, with high ticket prices making flying an option largely reserved for those who can afford it.

What Adedayo Olawuyi is saying

In the statement seen by Nairametrics, Olawuyi said the high cost of financing remains a major challenge for domestic airlines, with borrowing costs making it difficult for operators to sustain their businesses.

• “How many of you would take a loan of 30% to invest in a business that gives you less than 5% profit?” Olawuyi asked.

He also said airlines face challenges operating some routes in West Africa because of low passenger demand, making it necessary for carriers to deploy aircraft that match the size of the market.

• “We all focus on making money from airlines. As my boss says, the airline is the goose that lays the golden egg, and everybody wants a piece of it. But at the end of the day, if the goose dies, everything is lost,” he said.

Olawuyi said the challenges facing the sector cannot be addressed by airlines alone and called for greater cooperation among government, regulators and industry operators to improve connectivity and support sustainable airline operations.

Cost pressures keeping airfares high

Olawuyi identified foreign exchange, aviation fuel, aircraft maintenance, pilot training and financing as major cost pressures facing airlines.

He said the mismatch between naira revenues and foreign currency expenses exposes carriers to significant losses, particularly when the naira depreciates.

Olawuyi said Jet A1 prices rose from about N900 per litre in December 2025 to around N3,000 per litre in 2026, adding to pressure on airline operating costs.

He stressed that airlines cannot cut essential expenses at the expense of safety.

Get up to speed

The cost pressures identified by Olawuyi extend to pilot training and aviation fuel infrastructure.

• Captain Zino Mario, CEO of Zino Aviation, previously told Nairametrics that the shortage of simulator and type-rating facilities in Nigeria forces pilots to travel abroad for mandatory training, adding foreign exchange, travel and accommodation costs.
• Toyin Leo-Olagbaiye, General Manager, Aviation at Ardova Plc, said the Dangote Refinery has improved Jet A1 availability and eased shortages that previously disrupted airline operations.

However, he said Jet A1 prices remain linked to international benchmarks and foreign exchange, while road transportation to airports adds to the final cost.

Jet A1 accounts for more than 40% of airline operating costs in Nigeria, according to aviation fuel expert Peter Zira Dia, who warned that supply constraints could cause flight delays and cancellations.

Adeyinka Adewole, MD/CEO of Raven Energy Nigeria, also said higher Jet A1 costs would ultimately be passed on to passengers through higher ticket prices.

What you should know

West Africa has the highest average tax on air passengers in Africa, at about $110 per departure, more than three times Europe’s $32 average for comparable short regional journeys, according to the Atlantic Council.

• Nigeria also has aviation charges above global averages, according to the International Air Transport Association (IATA), while taxes, fees and regulatory levies can account for as much as 35% of airline revenues, according to the Centre for the Promotion of Private Enterprise (CPPE).
• The Atlantic Council’s August 2026 brief, Opening Africa’s Skies to Trade, Growth and Jobs, identified high taxation, restrictive regulation, blocked airline revenues and fuel import dependence as major barriers to aviation growth.

ECOWAS announced in December 2025 plans to abolish air ticket taxes across the sub-region from January 1, 2026, to reduce airfares and improve connectivity.

As of September 2026, the taxes had not been abolished.

The continued taxes and other operating costs leave airlines and passengers exposed to the wider cost pressures affecting air travel in the region.